My 12 month fixed rate term with PP finishes at the end of May. To remain with PP I have two options, either to renew on another 12 month fixed term or switch back to a variable rate. I face an increase in my kWh rate on the fixed term of nearly 21% and if I return to the variable rate it’s an increase of 17%. This seems pretty hefty and will not endear me to PP! Has the wholesale price of electricity risen so much?
Best answer by stephenrand
Here's what Ofgem said when they announced the increase in the price cap
Ofgem has announced today that from 1 April 2021 the price cap will return to pre-pandemic levels, principally as a result of changes in wholesale energy prices.
When wholesale prices fell sharply last year in the wake of the first lockdown, the level of the price cap fell by £84 in October to its lowest level yet for the current winter period.
Demand for energy has since recovered which has pushed wholesale prices back up to more normal levels.
For six months from 1 April the price cap will increase by £96 to £1,138 for 11 million default tariff customers, and by £87 to £1,156 for 4 million pre-payment meter customers.
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